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Claim Settlement on Taxes?

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PSU333

Junior Member
What is the name of your state? VA

I was rear ended my an underage drunk driver in Feb. of 2004. I was a passenger in the vehicle and just received a settlement in September of 2005. I was wondering if I had to claim this on my taxes. I am in the military, and although I did miss about a month of work, I did not lose any wages, therefore I figured the whole settlement is tax free....thoughts?
 


stephenk

Senior Member
the only taxable portion would be payment for loss of earnings or loss of future earnings. Since you claim you did not assert a loss of earnings, the settlement is tax free. to be extra sure, consult with a tax advisor on your base.
 

teflon_jones

Senior Member
The only thing taxable is anything you received for loss of wages, which according to your post was $0. So you owe no taxes.
 

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